Precision Castparts Corp. (PCC) has raised its potential common
stock buybacks by $750 million but said it wont hobble
its aggressive acquisition program.
Ore.-based producer of aerospace and industrial products said
its board of directors authorized share repurchases through
June 2015 representing 2.4 percent of its outstanding shares,
in addition to approximately $400 million remaining from a
previous authorization. The repurchase authorization
doesnt obligate PCC to buy any particular amount of
The primary purpose of
the increased authorization is "to offset dilution from
employee compensation plans," PCC said.
Chairman and chief
executive officer Mark Donegan said in a statement that the
expanded repurchase authorization was "firmly supported" by the
companys growth and cash-flow expectations, and the
company would continue to "aggressively pursue synergistic
acquisitions as the primary use of our cash flow."
PCC, which purchased
Titanium Metals Corp. in December 2012 and intends to spend
$600 million for France-based fittings manufacturer Permaswage
SAS, is considered one of the aerospace supply chains
most active acquirers.
investment firm Sterne Agee Group Inc. supported the expanded
stock buyback. Analysts Peter Arment and Josh W. Sullivan said
in a note that the authorization "sends the right message for
shareholders given the pullback in the stock," which they said
had declined 8 percent since the current quarter began.